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Ford Forms JV in China to Manufacture Electric Vehicles

Per Reuters, Ford Motor CompanyF and China-based Anhui Zotye Automobile will be setting up a 50-50 joint venture (JV) to produce electric vehicles for China. The companies will make a combined investment of $756 million for the same.

The new Chinese consolidation has been named Zotye Ford Automobile Co. Ltd. It has plans to build a manufacturing plant in the country’s Zhejiang province and will sell all-electric vehicles under a new Chinese brand.

In addition, the joint venture aims to launch a new brand of small all-electric vehicles. Also, with the rising demand for mobility services in China, Zotye and Ford will be examining vehicle connectivity and mobility service solutions for its customers.

By 2025, Ford intends to sell 70% of its vehicles having electrified powertrain options in China. The company has other Chinese partners in Chongqing Changan Automobile Co. and Jiangling Motors Corp besides Zotye. All these are intended to strengthen the Michigan-based giant’s presence in the mainland.

China in a bid to tackle the air pollution has implemented a new set of emission rules that would require all automakers to produce zero and low-emission vehicles, starting from 2019. This restriction on the sale of combustion engines has forced local as well as foreign automakers to emphasize more on the production of zero-emission electric vehicles in the country.

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